so how does it figure if its time and a half or double time?

I think the feature allows preparers to deal with the way the employers report their overtime payments. If the employer report it as "Premium Overtime" according to an article I read, you use the whole amount as qualified overtime. If the employers report them the whole amount paid in overtime hours, the software calculates the 1/3 that is considered qualified overtime, (at 1 and 1/2 times). For double time is the same process but using 1/2. I personally believe the programmers are trying to deal with the requirements that will be implemented for employers starting in 2026 when reporting overtime and they are a little ahead of the requirements which is good in my opinion. 2025 as we know is a transition year and they will be more flexible about the reporting requirements. 

There is a spot on the entry screen to enter 2X OT paid

Is there a place to answer whether the employee is in a FLSA-covered job, rather than just working for a nice employer?

Good pointg about FLSA. Overtime is qualified up to X1.5  .Double time is not required by FLSA and is usually a negotiated benefit.

The calculator takes 1/3 of the time-and-a-half dollars(correctly) but only takes 1/4 of the 2 times dollars as overtime wages to be deducted.

1/4 doesn't seem right. Only the amount OVER the time-and-a-half dollars. Or another way, only the time-and-a-half dollars, or the same as the 1/3.

Shouldn't it be the entire time over regular dollars?

I was having a problem with that calculation also, but the only qualified OT allowable is  1/2 time since that is what FLSA requires. If the total amout of reqular and  OT paid at double time is reported by the employer,  then dividing by 4 will give you the allowable 1/2 time portion.

Thanks for posting that Jim. 

My question is when entering the info in Proseries do I enter the total salary plus the OT and then it calculates the deduction?  (i.e.  EE made $65,000 wages plus OT is listed at 1700).  What goes into 14a when entering the W2?

14B is looking for the time and a half amount, or the double time amount, it will do the math for the deductible portion.

Using the example above what would you put in 14a?

14A is a checkbox for exempt employee

14B Youd put the OT amount.  Do you know if tis time and a half or double time?  do you have the final checkstub?

My apologies.  Yes, I have a check stub:

Wages are $65,000

OT (1/2 time) is $7000

DOT (double time) is $1400

I havent researched much about when you wouldnt use the calculated amount.

@turpintax This is new to everyone. Wy don't you try it until you get the correct result? Then you could report back here.

I'm trying to figure out how the software could make it any simpler than that.

Curious how to determine the allowed FLSA amount when employee works in California and overtime is considered over 8 hrs.

The taxpayer could work 10 hours a couple of days, earning overtime, but still be under the 40 hrs. for the week. Looks like I will need an employer breakdown for my clients to determine qualified deductible overtime.

Anyone else needing to do this?

From my understanding, I agree with the Overtime @2 x's, that 50% should be deductible instead of just 25%. Will continue researching....

Will also keep an eye on it to see if they make an adjustment.

I think were kind of stuck with what the employer gives us for the whole 8 hr day vs 40 hr week for 2025.  2026 W2s should have this covered.

Double time isnt mandated, only time and a half is, so you cant get the doubled portion of double time as a deduction.   Did they skip over that part in your update CEs?

Since the discussion has to do with OT deductions on the federal return, then I would follow the FLSA that defines OT as over 40 hrs and not 8 hrs.

Double time is not a FLSA rule so I would think we are stuck with deducting only the 1/2 componet of OT and not the 2X.

The 2026 W-2 instructions evade the question of what actually gets reported with the "TT" code.  Is it all of the overtime, whether 150% or 200% and whether just under FLSA rules or under state rules which sometimes applied and sometimes didn't? I think every W-2 with overtime this year will have to be issued with a separate memo, explaining how the number was calculated.  Pass stupid laws, expect stupid consequences.  

Unless I was sleeping, 😉  I do not remember a discussion on this.

Fortunately I have the materials and will review.

Thanks!

The 2025 tax returns are going to have mass overstatements of overtime deductions due to the combination of a lack of overtime not being broken out in detail on employee paycheck stubs and a lot of tax preparers not knowing the rules and running with whatever is placed in front of them.

Did you take the CEs during summer or closer to December?  I think it wasnt understood how it worked back during summer, at least the short CE I did, I dont remember it being clarified like that either, but my December classes, very clear.

Always appreciate your input Lisa, I was kidding about not paying attention but had to question myself.

Went back to read materials from two different sources that I studied the updates through and neither mentioned the double time. Had to google it and find in in an ai search.

Now I feel prepared....

They should upload a video showing us with proseries!! so we don't file anyones taxes wrong! 

Can you post a video on overtime? This is very confusing

some employers are reporting the OT on the W2 already. If you have the OT on the w2 you will click "no" on "14c" and input the dollar amount on "14d" if using Proseries Basic. The only problem that I am running is the amount reported on the W2 is not matching the amount on the last check stub and people getting upset. So, I found this questionare that answers many of the questions but a bit complicated to for the employees to understand. hope this helps.

Here's the link

https://osc.ct.gov/wp-content/uploads/2026/01/2025-W2-Q-and-As-Employees_01052026.pdf

Here's the part that I believe most of us will need or will helps us understand.

"1) The following questions and answers are just a few examples of what may be asked regarding this newly passed bill regarding the premium Overtime reporting. If you have additional questions, please reach out to your agency for help. You can also view the IRS document regarding this Bill by clicking the link at the end of this section.

Q1: Why does my W2 Box 14 OBBBTT total not match my pay stub totals for overtime?

• A1 . The One Big Beautiful Bill (OBBBA) deduction applies only to the extra half-time pay (the "premium") of the standard time-and-a-half overtime rate, not the entire overtime payment.  The calculation is as follows: Total Premium OT = (Total Premium Overtime Hours Worked) × (Regular Rate of Pay × 0.5) **The Federal government deems “the .5” as premium overtime.

Q2: Which overtime earnings codes count as premium overtime in the calculation?

• A2. Premium overtime is defined as earnings that are included in the FLSA calculation that is calculated at the federal FLSA rate of 1.5% This limits the earnings codes to: • OFO (Time and a Half OT FLSA) • QOF (Q FLSA Overtime) • QFL (Q104 FLSA Overtime) *While there are other types of 1.5% overtime, those specific earnings codes are related to contractual overtime, which is State of CT specific and falls outside of the Federal FLSA scope.

Q3: Does double time overtime or overtime that is more than 1.5 count included on the W2 in Box 14 OBBBTT?

• A3: No, Premium overtime is defined as earnings that are included in the FLSA calculation that is calculated at the federal FLSA rate of 1.5% Again, this limits the earnings codes to: • OFO (Time and a Half OT FLSA) • QOF (Q FLSA Overtime) • QFL (Q104 FLSA Overtime)

Q4: If the Annual Cap for premium overtime annual deduction is 12,500 for single filers and 25,000 for married individuals filing jointly, why is the dollar amount on my W2 Box 14 OBBBTT more than the annual Cap? 1 | P a g e

• A4. Employers were instructed to enter the full calculated premium overtime amount in Box 14 OBBBTT and not limit the Box 14 OBBBTT amounts to the Cap totals.

Q5: Can I receive a detailed report of what Box 14 OBBBTT totals are in terms of total hours by the earnings codes?

• A5: Yes, OSC will be providing the agencies with detailed spreadsheets that contain the Box 14 OT employee level hours detail. This spreadsheet is limited to the agencies that report their employees OT in hours using the correct FLSA earnings codes: • OFO (Time and a Half OT FLSA) • QOF (Q FLSA Overtime) • QFL (Q104 FLSA Overtime)

Q6: I believe I earned 1.5 FLSA overtime as defined by the OBBBA that is not included on my W2 Box 14 OBBBTT. What should I do?

• A6. You should contact your employing agency. If your employing agency did not pay your overtime using the correct premium overtime code or if your agency paid your overtime as a flat amount instead of using the number of hours worked times your hourly rate, it is possible that the amount is not listed on Box 14 OBBBTT on the W-2. Under these two scenarios, your agency will need to provide you with the correct premium overtime amount to enter on your tax return.

Q7: Does the amount listed on my W2 Box 14 OBBBTT reflect the income phase-out calculation as defined in the OBBBA?

• A7 No, the deduction is reduced if the employee's Modified Adjusted Gross Income (MAGI) exceeds certain thresholds: o $150,000 for single filers. o $300,000 for married individuals filing jointly. o The deduction is reduced by $100 for every $1,000 their MAGI exceed the threshold.  Only your tax preparer can determine your MAGI and reduce the OBBBA deduction by $100 for every $1000 in which your MAGI exceed the threshold.

Q8: I work at a legislative branch agency, and I had OFO overtime this year, why does my W2 not have a Box14 OBBBTT amount included on it?

• A8 Legislative Management, Comm on Equity and Opportunity and Comm Women, Children & Seniors are exempt from the OBBBA and cannot claim an overtime deduction per § 553.12 Exclusion for employees of legislative branches: (a) Section 3(e)(2)(C) of the Act provides an exclusion from the definition of the term “employee” for individuals who are not subject to the civil service laws of their employing agencies and are employed by legislative branches or bodies of States, their political subdivisions or interstate governmental agencies. "

Hi, 

I am adding Schedule 1-A, and for some reason, I don't have the option to enter the information in your screenshot. I tested it before, and it worked. Now it doesn't lead me anywhere but the face of the form. 

Is there a shortcut to get ot Part VII - Deductible Overtime? 

Disregard I found its directly on the W2 apologies 🙂

Ok, so it doesn't matter that you got paid double, only that you got paid over regular rate.

And the only amount you can get excluded is the extra half. So you can only exclude half of the double-time overtime rate, which is half of the total regular rate.

Good to know.

And only if your AGI is below limits.  And your spouse must be a Sagittarius.  Or something like that.  

Sounds great, TY!  

Q How kind of proof/documentation and how do we get it to prove that a company is FLSA so we definitely know double time applies or not??.

Judi

The final YTD pay stub "generally" breaks down OT into 1/2 time and double time catergories.